Municipally owned utilities; authorize to accept electronic payments and to absorb transaction fees in its rate base.
Impact
The proposed changes would significantly impact municipal utilities across Mississippi, potentially increasing the adoption of electronic payment methods among residents. By allowing utilities to absorb transaction fees, the bill seeks to alleviate the financial burden on consumers who may be deterred from using electronic methods due to additional costs. This could lead to an increase in timely payments and reduce the administrative burdens associated with traditional payment methods. Furthermore, it aims to provide equal access to payment options, ensuring that residents can choose the most convenient way to pay for their utilities.
Summary
Senate Bill 2010 aims to amend Section 21-27-23 of the Mississippi Code, allowing municipally owned utilities to accept payments for their services via credit cards, debit cards, and other forms of electronic payment. The bill permits these utilities to absorb any associated fees or charges into their cost of service rate base. This amendment is designed to modernize payment options for utility services and enhance convenience for consumers, making it easier for residents to settle their utility bills.
Contention
While the bill has support due to its potential to enhance payment flexibility for consumers, there may be concerns regarding the financial implications for municipal utilities themselves. Absorbing transaction fees could strain resources, especially for smaller municipalities with tighter budgets. Some legislators may debate whether this practice could set precedents that other utilities might follow, impacting the state's regulatory landscape. The balance between consumer convenience and financial sustainability for utilities may be a point of contention as discussions on the bill progress.